Sony has addressed the ongoing criticism regarding its decision to phase out physical media, stating that the company has observed no negative impact on its bottom line. During a recent earnings call, CFO Lin Tao confirmed that despite reports of potential boycotts and subscription cancellations, the company's financial performance remains unaffected.
Business Outlook and Digital Sales
Sony is currently forecasting a record-breaking fiscal year for its PlayStation 5 business. CFO Lin Tao noted that a significant portion of content sales is already digitized, which supports the company's confidence in moving away from physical media.
"At this point in time, we are not seeing any impact on our business," Tao said. "Going forward, about the content sales, a large part is already digitized. And therefore, as a result of the discontinuation of discs, we don't see that there will be any negative impact on our business."
Future of Physical Retail
While the company is moving to end disc manufacturing by 2028, it does not plan to abandon the physical retail space entirely. Sony confirmed it will continue to distribute physical game boxes in North America. These packages will function as physical containers for digital codes, a model already in use for titles such as Grand Theft Auto 6.
Regarding the vocal opposition from fans, including a proposed "blackout" scheduled for late August, Tao acknowledged that players have strong attachments to physical collections. He stated, "We have to think about how to respond to that feedback," though he emphasized that the company intends to "cautiously move this forward" without reversing its current strategy.